Sale rumors?

#1 04-12-2010, 09:55 AM

Abraxis retains Goldman Sachs and Lazard to explore sale – sources
By Sasha Damouni and Nadia Damouni

Published: April 12 2010 14:19 | Last updated: April 12 2010 14:19

This article is provided to FT.com readers by dealReporter—a news service focused on providing insightful intelligence on event driven situations to investors. www.dealreporter.com

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Abraxis Bioscience (NASDAQ:ABII) has retained Goldman Sachs and Lazard as part of a private process to sell itself, people familiar with the matter told dealReporter.

Spokespeople for Abraxis and Goldman Sachs declined to comment. Lazard was unavailable to comment ahead of publication.

A first person familiar with the matter described the process as being “very targeted” and “narrow” in scope. According to a second person, the advisors were likely retained as early as January, prior to the announcement of CEO Lonnie Moulder’s departure later that month. Moulder served a short tenure having assumed the role of chief in April 2009.

Meanwhile, a third person familiar with the matter said a sale could still have some complications as Executive Chairman and current CEO Patrick Soon-Shiong continues to have very high price expectations.

News of the exploration of a sale comes on the heels of the company’s 17 March announcement that its randomized registrational Phase III clinical trial comparing Abraxane (protein-bound paclitaxel) with Taxol (paclitaxel) injection, both in combination with carboplatin, met the study’s primary endpoint.

Abraxane showed a significant improvement in overall response rate as compared to Taxol, in the first-line treatment of patients with advanced non-small cell lung cancer (NSCLC), as assessed by an independent radiologist review.

In a January interview with this news service, Soon-Shiong said the company would be open to offers and calls from banks regarding opportunities as they present themselves. Abraxis also announced that it intends to spin-off the Abraxis Health division this year.

As for a company sale, the third person said possible suitors may grow to agree with management’s price expectations, but for the time being a disconnect remains. Possible suitors could include GlaxoSmithKline plc (NYSE:GSK), Sanofi-Aventis (NYSE:SNY) and Eli Lilly (NYSE:LLY), said the first person. He added that large players that currently do not have critical mass in oncology but have a presence would vie an interest.

Still, according to the second person, a number of companies have already walked away from Abraxis believing it has too much “hair,” including AstraZeneca’s (NYSE:AZN) co-promotion rights to Abraxane. But this person did say there appears to be one particular suitor showing interest, though he could not identify the party.

Abraxis has previously run two processes, commented a fourth person familiar with the matter. During those discussions, he claimed Soon-Shiong was also very difficult in negotiating. At that time, large pharma took a look at the company and ultimately walked away because of price discrepancies, he said.

Last week, the company was trading around USD 50 per share, which is near Abraxis’ 52-week high of USD 56.21. Abraxis has a USD 2.05bn market cap

#2 04-12-2010, 12:08 PM

High employee turnover
No ability to keep anyone of value in an upper management position
Revolving door from sales rep to CEO
Great promise, great potential but the most miserable excuse for a company on the planet. It would be fabulous to see it sold so that someone can do by right for the potential.
Still think it will never happen with LA dynamics
Can't wait to leave
If you're unemployed, take one of the endless open positions to earn a paycheck
Don't be so stupid as to leave another job to come here

#3 04-12-2010, 01:49 PM

Toxic.

Enough said.

#4 04-12-2010, 01:52 PM

Quote:

Originally Posted by Anonymous

High employee turnover
No ability to keep anyone of value in an upper management position
Revolving door from sales rep to CEO
Great promise, great potential but the most miserable excuse for a company on the planet. It would be fabulous to see it sold so that someone can do by right for the potential.
Still think it will never happen with LA dynamics
Can't wait to leave
If you're unemployed, take one of the endless open positions to earn a paycheck
Don't be so stupid as to leave another job to come here

What if your current job sucks though? It can't be any worse? How long until you think you will be sold?

#5 04-12-2010, 04:02 PM

Quote:

Originally Posted by Anonymous

What if your current job sucks though? It can't be any worse? How long until you think you will be sold?

You know the turnover rate here? Across the board, top to bottom?
Can't suck worse where you are. Trust me, it can't.

#6 04-12-2010, 05:16 PM

I have a test for you. Name all the CEOs from 2005 to today. Can't do it can you.

Here's some fund trivia from the january 2008 roster.

Mike P NSM demoted
Ed B E RBD gone
(Ken S W RBD gone and vacant for almost 3 yrs)
Rebecca V CA DSM gone
Meko P gone
Cathy C gone
MariPat gone
Sonja D gone
Clark L gone
Omar H gone
Mike W gone
Steve S gone
Gene N gone
Justin E gone
Jeff B gone
Annette R gone
Amy M gone
LeRoyce gone
Mark B gone
Mike R gone
Michelle W gone
Dave B demoted
Chris C gone
Peggy F gone
Lisa A gone
Laura H gone
Kim R gone
Tab G gone
Jeff P gone
Bob A gone
Claudia L gone
Dhiren gone
Chris C gone
Michael G gone
Glen R gone
Jeff D gone
Dawn G gone
Ernie gone
Kim L gone
Eric H gone
Carlo gone
Joe H demoted
Diane B gone
Nadine C gone
Lauren gone
Karen gone
Mark H gone
Brett K gone
Ildi gone
Virginia gone
Shane gone
Chris L gone
Sarah gone
Jeff O gone
Barb S gone
Dan S gone
Cara T gone
David W gone
Aimee gone
Pete G gome
Janice P gone
Tim S gone
David C gone
Rick G gone
Yngmi gone
Mark M gone
Jasen M gone
Dean R gone
Shaune P gone
Trebla gone
Angela O gone
Julie L gone
Mike B gone
Deb D gone
Rich H gone
Jen H gone
Shannon H gone
Jonas gone
Robert J gone
Craig gone

out of only about 100 reps and 10 dsms. Figure it out.

#7 04-12-2010, 05:17 PM

Small company. 77 gone out of less than 200 from the 2008 roster.

#8 04-12-2010, 05:27 PM

Quote:

Originally Posted by Anonymous

You know the turnover rate here? Across the board, top to bottom?
Can't suck worse where you are. Trust me, it can't.

It still has to be better than "big" pharma? Everyone I know at Abraxis seems like they are good people.

#9 04-12-2010, 05:29 PM

Quote:

Originally Posted by Anonymous

You know the turnover rate here? Across the board, top to bottom?
Can't suck worse where you are. Trust me, it can't.

Believe me, it is worse at other companies. I can tell you stories of the ridiculous BS going on at our company. It feels like primary care when I started in pharma. The way they treat us is like children. So much for the "specialty" arena of Oncology with these clowns.

#10 04-12-2010, 10:53 PM

Quote:

Originally Posted by Anonymous

It still has to be better than "big" pharma? Everyone I know at Abraxis seems like they are good people.

There are people in the field who are incredible. They are only here because of the awful job market. Some aspects are better than big pharma as we have fewer policies and procedures. There are terrible benefits, lower pay, a joke of a 401K, options underwater, 3 weeks vacation if you've been here 1 day or from day 1, nickle and diming bs endlessly around expense reports, and less than one full brain capability collectively in all of NJ.

#11 04-12-2010, 10:55 PM

Quote:

Originally Posted by Anonymous

Believe me, it is worse at other companies. I can tell you stories of the ridiculous BS going on at our company. It feels like primary care when I started in pharma. The way they treat us is like children. So much for the "specialty" arena of Oncology with these clowns.

Unless you are here you have no idea

#12 04-12-2010, 11:04 PM

Quote:

Originally Posted by Anonymous

There are people in the field who are incredible. They are only here because of the awful job market. Some aspects are better than big pharma as we have fewer policies and procedures. There are terrible benefits, lower pay, a joke of a 401K, options underwater, 3 weeks vacation if you've been here 1 day or from day 1, nickle and diming bs endlessly around expense reports, and less than one full brain capability collectively in all of NJ.

what is the company match on the 401K?